Scores (0 to 100) Location Factor College proximity Weight Mall 1 Mall 2 Mall 3 Mall 4 0.30 40 60 90 50 Median income 0.25 75 80 75 70 Vehicle traffic 0.25 60 90 79 74 90 Mall quality and size Proximity of other shopping 0.10 90 100 80 0.10 80 30 60 70

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question

Sweats and Sweaters is a small chain of stores specializing in
casual cotton clothing. The company currently has five stores
in Georgia, South Carolina, and North Carolina, and it wants
to open a new store in one of four new mall locations in the

Southeast. A consulting firm has been hired to help the com-
pany decide where to locate its new store. The company has

indicated five factors that are important to its decision, in-
cluding proximity of a college, community median income,

mall vehicle traffic flow and parking, quality and number of
stores in the mall, and proximity of other malls or shopping

areas. The consulting firm had the company weight the im-
portance of each factor. The consultants visited each potential

location and rated them according to each factor, as follows:Given that all sites have basically the same leasing costs
and labor and operating costs, recommend a location based
on the rating factors.

Scores (0 to 100)
Location Factor
College proximity
Weight Mall 1 Mall 2 Mall 3 Mall 4
0.30
40
60
90
50
Median income
0.25
75
80
75
70
Vehicle traffic
0.25
60
90
79
74
90
Mall quality and size
Proximity of other
shopping
0.10
90
100
80
0.10
80
30
60
70
Transcribed Image Text:Scores (0 to 100) Location Factor College proximity Weight Mall 1 Mall 2 Mall 3 Mall 4 0.30 40 60 90 50 Median income 0.25 75 80 75 70 Vehicle traffic 0.25 60 90 79 74 90 Mall quality and size Proximity of other shopping 0.10 90 100 80 0.10 80 30 60 70
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